The conventional fixed-rate mortgage is a widely used loan type, offering consistent monthly payments of principal and interest throughout its duration. It typically spans 10 to 30 years and can be paid off early without penalty. This mortgage is structured to be fully repaid by the end of its term.

With a fixed-rate mortgage, your monthly payment might fluctuate if you have an impound account. Besides the standard "principal + interest" and any mortgage insurance premium (required for buyers with less than a 20% down payment), some lenders collect extra funds each month for the prorated monthly property taxes and homeowners insurance. These additional funds are placed in an impound account by the lender, who uses them to pay the borrower's property taxes and homeowners insurance premium when they come due. If either the property tax or the insurance changes, the borrower's monthly payment will be adjusted accordingly. Nonetheless, fixed-rate mortgages offer very stable and predictable overall payments.